The study examines the contemporaneous relationship between Nifty returns and India VIX returns. Literature documents that the relationship between them is negative and asymmetric. Building on this, the study considers the linear and quadratic effect of stock index return (CNX Nifty) and examines the changes in implied volatility index (India VIX). The study finds both linear and quadratic CNX Nifty index returns are significant for changes in the level of India VIX. Findings suggest that India VIX provides insurance both for downside market movement and size of the downside movement.
Month: June 2019
Impact of Weather on Return and Volatility: Evidence from Indian Stock Market
This study examines the impact of Weather factors on return and volatility of the Indian stock market. The study uses the daily data of top four metros and tests its impact on the return and volatility of S&P CNX Nifty index from January 2008 to December 2013. This study applies GARCH (1, 1) model and find that the stock returns are influenced by temperature in Chennai and the stock return volatility influenced by the temperature in Mumbai, Delhi and Kolkata.
Price Discovery and Market Efficiency of Commodities Futures Market in India- A Cointegration and Causality Analysis
The paper studies the Indian commodity futures market in order to determine the price discovery, long run market efficiency and short run dynamics in futures market using by time series analysis tools. To test the market efficiency and long run equilibrium, tools like Engle and Granger co-integration test (1987) and Johansen co-integration test (1988) have been applied. The Granger Causality (1969) test is used test the market efficiency to infer cause and affect relationship between spot and futures market in India. To examine efficiency of commodity futures and spot market the MCXs1 four spot and futures commodit
Robust Benchmarking of Indian Mutual Funds-A Partial Frontier Approach
Performance analysis of mutual funds is usually made on the basis of return-risk framework. Traditionally, excess return (over risk-free rate) to risk ratios were used for the purpose mutual fund evaluation. Subsequently, the application of non-parametric mathematical programming techniques in the context of performance evaluation facilitated multi-criteria decision making. However,the estimates of performance on the basis of conventional programming techniques like DEA and FDH are affected by the presence of outliers in the sample observations. The present, accordingly uses more robust benchmarking techniques for evaluating the performance od sectoral mutual fund schemes based on observations for the second half of 2010. The USP of the present study is that it uses two partial frontier techniques (Order-m and Order- a) which are less susceptible to the problem of extreme data.
Mobile Money Landscape in the 12 SADC Countries using FinScope Survey Data
There is no doubt that mobile money is bringing the under-served and the excluded population into the main stream financial services corridors. Based on the FinScope surveys, mobile money is becoming one of the enablers of financial inclusion. In an increasing number of developing countries, a number of poor people are using basic mobile phones to transfer money, paying for goods and accessing some basic financial services. According to the World Bank, mobile financial services are amongst the most promising mobile applications in the developing world. Although FinScope results show that mobile money usage is relatively low (23%) in the SADC region, the trend of usage is coming up fast. FinScope results show that close to 7 in 10 mobile money users are using it as a remittances/money transfer vehicle while 54% for buying airtime. It is encouraging that about 7 million adults (24% of mobile money) store value or save money in their mobile money accounts. Some barriers to mobile money relate to: affordability, perceived cost of mobile money, lack of understanding of mobile money/lack of awareness and no access to cell phones. Besides these barriers, mobile money is becoming a game changer for the landscape of financial inclusion in the SADC region.
Monthly Patterns in Egyptian Stock Market
In this paper, monthly effect in Egyptian stock market is investigated for the period January 2007 to July 2015. After examining the random walk hypothesis of the return series, a Seasonal Autoregressive Moving Average (SARMA) model is specified to test the monthly effect in Egyptian Stock market. The results of the study imply that the banking sector of stock market is informationally efficient and does not confirm to the existence of seasonality in stock returns.
Study and Analysis of Dividend Policies, Practice and Its Application in Mumbai based Corporate Houses
In the present paper an attempt has been made to study dividend policy of Mumbai based companies of India. The study tries to assess the level of perceived awareness about models and use of dividends policies, analyses the factors affecting dividend distribution decisions and evaluates the impact of the same on the financial decision-making of companies. In addition the paper tries to understand the correlation between size of companies and distribution of dividend policies. The results of the research paper show that a majority of the fifty respondent Companies follow a policy of consistent dividend rate which is influenced by profit after tax, and finally the legal requirements. It is further observed that generous dividend or erratic divided policies are not popular choice among fifty respondent companies. The use of traditional method of dividend policies which suggests that market price increases with declaration of dividend is strong and dominant. Followed by the Modiglani Miller Method which indicates that dividend distribution has no impact on valuation. On the contrary it is found that Investment decisions influence share valuation. This is further followed by Walter Model where impact of dividend on share price depends on the IRR visa-a-vis cost of capital) and Gordon Method in which dividend policy has an impact on share valuation. Statistical tests such as Friedmans ANOVA test, Kruskal-Wallis ANOVA, and, Karl Pearsons Coefficient of Correlation analysis are used for analysis and the validity of the collected data is checked by using Cronbachs alpha.
Enact Strict Law To Ensure Personal Safety Of Doctors
Let me begin with a candid confession: I have not seen God with my own eyes whom I worship but yes I have always seen the best creation of God – “Doctors” right from my childhood days because whenever I had any problem of any kind pertaining to my physical well being, my parents always took me to doctor who always took utmost care to ensure that I don’t suffer from any problem any more and prescribed the best medical treatment for my problem! The mere soothing words of doctors prove to be the biggest medicine for patients in many cases.
Yet it is most unfortunate that doctors themselves in our country are not safe and are abused, attacked and assaulted by some disgruntled people on one pretext or the other! It is an unpalatable truth and sad commentary on the state of affairs in our country that three out of every four doctors admit to face some form of verbal or physical abuse!
To put things in perspective, we all saw just recently how the seven-day old strike by junior doctors and ‘cease-work’ in West Bengal medical colleges and hospitals was spreading all over India but ultimately when the Chief Minister of West Bengal – Mamata Banerjee agreed to accept their demand, the doctors promptly called off their strike! The strike was triggered by an attack on a doctor – Dr Paribaha Mukhopadhyay with bricks who is now being treated for a skull fracture by the family of patient who died at the NRS Medical College and Hospital at Kolkata! We all saw how doctors across the country joined the protests and observed a shutdown in response to a call by the Indian Medical Association.
It is most distressing that people fail to realize that doctor can only perform operation but the survival of patient cannot be controlled wholly by a doctor! Which doctor will ever want that the patient whom he/she is treating should ever die? Is it fair that a doctor is beaten black and blue just because a patient fails to survive?
As it turned out, just recently we saw that when the Union Health Minister Dr Harsh Vardhan who is himself also a doctor wrote to Chief Ministers of States asking them to frame laws for protection of medical professionals, he also attached to it a draft law framed by the Indian Medical Association (IMA). The draft titled Protection of Medical Service Persons and Medical Service Institutions (Prevention of Violence and Damage of Loss of Property) Act, 2017 proposes a ten-year jail term and a Rs 5-lakh fine for violence against doctors. The IMA is currently seeking a seven-year jail term for the offence.
Needless to say, there is no reason why the IMA proposal should not be accepted in its entirety. Violence against doctors in any form cannot be justified under any circumstances! Those who still dare to indulge in it must be made to pay heavily for it and under no circumstances should be allowed to escape unpunished! Only then will the fear of punishment deter potential offenders from letting loose violence of the worst kind against doctors!
It may be recalled here that the draft law was submitted by the IMA to the Health Ministry in 2017. It had demanded a central law for the protection of doctors and has raised it again in the wake of the NRS Medical College and Hospital incident in Kolkata. Very rightly so!
To be sure, the provisions of the draft law are stringent: it categorizes both mental and physical abuse as violence against doctors and covers not just hospitals and a radius of 50 metres around them, but also home visits. Such violence, it says, will constitute an offence that is cognizable, non-bailable, non-compoundable and fit for trial by a court of the Judicial Magistrate of First Class. Apart from penal provisions, it also provides that the offender in case of any property damage will have to pay twice the price of the damaged property as compensation. Very rightly so!
What’s more, the draft law lays down specifically that, “any act of violence, mental or physical abuse against medical service personnel during or incident to, including, but not limited to going to or coming from medical service institution, discharge of his lawful duties pertinent to medical and healthcare delivery within or within 50 metres of such medical institutions, (safe zone) or in a mobile clinic or in an ambulance or during home visits shall be prohibited”.
It cannot be lost on us that Dr KK Aggarwal who was President of IMA when the draft Act was submitted told the media that, “At that time, when we looked at the legal protection available to doctors, we found that 19 states have some provisions, many have promulgated ordinances. When we met the Inter-Ministerial Committee, the Additional Secretary told us that health is a state subject, so only if some states write to the Centre for such an Act, can a central Act be made. Their position was that there are enough provisions in the IPC to tackle this situation, but our position was that in public interest, doctors need a special provision. If one doctor is assaulted, several hundred patients suffer as he goes off duty.”
As things stood, in his letter to Chief Ministers, Dr Harsh Vardhan cited a July 2017 letter sent by the Union Health Ministry to all Chief Secretaries which contains the decision taken by the Inter-Ministerial Committee constituted under the Ministry to review the Ministry to review the issues raised by the IMA. The Committee, in its report, recommended that the Health Ministry suggest to all state governments, which do not have a specific legislation to protect doctors and health professionals, to consider one to strictly enforce the provisions of special legislation wherever they exist or enforce the IPC/CrPC provisions with vigour.
To say the least, Dr Harsh Vardhan who is Union Health Minister also wrote that, “The Indian Medical Association (IMA) has raised this concern many a time. Since ‘Police’ and ‘Public Order’ are State subjects, Government of India, on many occasions has drawn attention of State Governments for an urgent need for a robust criminal justice system with emphasis on prevention and control of crime.”
No doubt, this burning issue cannot be any longer allowed to hang fire! It must be addressed forthwith. Doctors must be provided adequate security so that they can function without any fear! When politicians can be provided security then why can’t doctors also be similarly provided security?
Be it noted, at least 19 states which includes West Bengal which is the real epicenter of the protests have already passed what is called the Protection of Medicare Service Persons and Medicare Service Institutions (Prevention of Violence And Damage To Property) Act, also known as the Medical Protection Act (MPA). The Act which is covering doctors affiliated to institutions as well as independent practitioners, outlaws attacks against physicians and damage to their property. The offenders under this Act can get a jail term of up to three years and a fine of Rs 50,000.
Well, it must be said that as stringent as it sounds, the Act, however, utterly fails to really protect doctors because it features neither in the Indian Penal Code (IPC) nor in the Code of Criminal Procedure (CrPC). It goes without saying that this makes it difficult for victim doctors to approach the police for help or the latter to file a complaint against suspects. The palpable reason underlying it is explained by Dr Neeraj Nagpal who is the Convener and Managing Trustee of the Medicos Legal Action Group in Chandigarh and who aptly points out that, “Without any provision in the IPC, filing a case can sometimes mean taking a copy of the Act to the police because she or he may not even know about it.” He also further added that, “Police may not even be sure under which section to file such a case.”
It needs no Albert Einstein to conclude that all this can be addressed if the Centre displays political will power and brings in suitable legislation in this regard to ensure personal safety of doctors at all cost. It is known all too well that doctors have long been demanding that a central law be put in place instead of a state-wise MPAs as well as adequate security at hospital premises. Dr Rajan Sharma of the Indian Medical Association was at pains to point out that, “I have lost count of the number of requests we have made for a central law.”
Going forward, Dr Rajan also lamented that, “Protests only take place after attacks happen and it has been impossible for us to keep track of the rising number of such cases.” Why can’t Centre accede to their legitimate and well deserved requests which is their biggest grievance also? Centre must accede now!
It cannot be dismissed lightly that in 2017, the IMA released a study that found 75 percent of doctors faced some form of violence while on duty. Dr HL Nag who is a sports doctor at All India Institute of Medical Sciences rued that, “Violence is not just physical. We also face verbal abuse almost every day. I have even been forced to call the police several times.” It is very rightly feared by doctors that intermittent attacks on physicians may stop people from taking up the profession. Dr HL Nag also further rightly lamented that, “The number of doctors vis-à-vis the number of patients is already less in hospitals across the country. We skip food and work without taking breaks to cater to patients. With news about attacks against doctors on the rise, more and more people are leaving the profession. Resident doctors and those practicing in rural areas are most at risk of being violently attacked.”
To say the least, barring the Pre-Conception and Pre-Natal Diagnostic Techniques (PCPNDT) Act, 1994 – making prenatal sex determination illegal – the Central Government generally does not intervene in any health laws. Here also, Centre is dishing out the same reason! Many nod their head in approval with Centre’s stand!
Having said this, it is high time and Centre must also now consider the serious gravity of the situation concerning increasing attacks on doctors! Dr Nagpal very rightly hit the nail on the head by pointing out that, “Why is the PCPNDT Act a central one? It is because the authorities saw a unique problem that could be better monitored and remedied by a central law. The situation is same when it comes to violence against doctors.”
It is heartening to note that the IMA too stands firmly with the protesting doctors and echoes demand for a central law and better security of physicians. Centre must now step up on the gas and take a strong stand on it and enact swiftly a strict law in this regard to ensure that unabated violence against doctors never goes unpunished and unchecked under any circumstances. Violence against doctors is completely unacceptable and unjustified.
On a concluding note, it must be said that doctors too rightly want that their community should be left alone so that they can do their jobs safely. Shame on us, shame on our lawmakers and shame on our system that cannot even ensure that those who attack doctors are sent behind bars for at least 10 years as rightly proposed by IMA and heavy fine of Rs 5 lakh also imposed which may even be raised if the damage is more! No more excuses, no more delays, no more ifs and buts! Only and only prompt action is needed to enact a strict law that is enforced in totality and with swiftness to ensure that those who lay their dirty hands on doctors are made to face the dire consequences! Assault on doctors must be made a non-bailable offence! No compromise can be done here!
Sanjeev Sirohi, Advocate,
s/o Col BPS Sirohi,
A 82, Defence Enclave,
Sardhana Road, Kankerkhera,
Meerut – 250001, Uttar Pradesh.
Ban Advocates From Carrying Weapons Inside Court Premises
It is most horrifying to learn that a 37 year-old young and promising lawyer Darvesh Yadav who had just recently on June 9, 2019 been elected as the first woman chairperson of Bar Council of UP was on June 12 just three days later shot dead right inside the Agra District Court by another lawyer Manish Sharma thus cutting short her life in the most gruesome manner which can never be justified under any circumstances!
Why can’t advocates as well as others be barred from carrying weapons inside court premises? UP Bar Council is the biggest Bar Council in the world with maximum members numbering more than one lakh and what a spectacle has been created that none other than the Chairperson of UP Bar Council has been shot dead right inside court premises!
Needless to say, the lawyers of not just West UP but of entire UP observed strike the next day following her murder and everyone roundly condemned the dastardly manner of her killing right inside court premises! Manish Sharma fired at least three rounds at Darvesh Yadav inside the chambers of another lawyer – Arvind Kumar Mishra and then later shot himself on the head. Alas, a promising young woman’s career who became UP Bar Council head at such a young age of 37 and her life was brought to an abrupt end! It must be ensured that henceforth no person whether he/she is advocate or anyone else is allowed to carry weapons right inside court premises!
In an emergent meeting convened by the Oudh Bar Association in the wake of the shocking murder, it condemned the incident and resolved to abstain from work to protest the attack. The Association also resolved to call for special enquiry by the State Government into the crime. Last March, a lawyer was shot dead in a court campus in Basti district.
It must be revealed here that Agra City’s Assistant Superintendent of Police Prashant Verma said that she was shot by lawyer Manish Sharma who had been her long time acquaintance. He said that the pistol used by the lawyer is a licensed weapon and the police have taken possession of it. Manish Sharma who also shot himself is currently undergoing treatment at a hospital and is in a critical condition.”
To be sure, Prashant Verma disclosed that an FIR has been lodged against Manish Sharma on charges of murder at the New Agra police station. According to Verma, lawyers on morning of june 12 took out a victory procession to celebrate Darvesh Yadav’s victory, which ended at around 2.30 pm. Darvesh Yadav then went to the chamber of a local lawyer Arvind Mishra. Verma also revealed that, “While Darvesh was talking to lawyers, Manish Babu arrived there. A few minutes later, a heated argument took place between Darvesh Singh and Manish Babu over some issue. Suddenly, Manish took out his licensed pistol and shot her thrice.”
Furthermore, Verma also revealed that, “Before lawyers present there could understand, Manish Babu shot himself in the head with the same pistol. An autopsy report is still awaited.” Verma also said that police were yet to determine the motive. He said that, “Manish Babu was a long-time acquaintance of Darvesh Singh. So far, no lawyers had come forward to tell if there was a dispute between Darvesh Singh and Manish Babu. The investigation is on.”
Both Darvesh and Manish had started practicing in Agra district court in 2004 and had been sharing the same office also. Lawyers at Agra court reveal that Manish Sharma was the biggest supporter of Darvesh and had even campaigned for her in the UP Bar Council elections and are too shocked to explain the reason for this extreme act. In photo also he can be seen waving victory sign along with Darvesh Yadav after she won!
To say the least, Agra Bar Association’s General Secretary DP Ojha said that, “Manish Babu was once a junior of Darvesh Singh, who was unmarried. We have no idea of the dispute between them.” Darvesh Yadav was staying at the Khandari area of Agra. He said that, “On Wednesday morning the Agra Bar Association had organised a welcome programme for Darvesh Singh. After she returned to advocate Arvind Mishra’s chamber after the programme ended, the incident occurred. Darvesh Singh was shot thrice in the head and chest.” It must be revealed here that Arvind Kumar Mishra who is former legal advisor to ex UP Governor BL Joshi did not speak to media about it and refrained from saying anything.
Going forward, Durgvijay Singh Bhaiya who is the former General Secretary of Agra Greater Bar Association said that, “We are shocked. Darvesh and Manish had cordial relation for several years. Can’t understand how could Manish shoot his colleague.” This gruesome incident has certainly shocked not just the entire legal fraternity but also others who have no association with courts in any manner! Ajay Kaushal who is station house officer of New Agra told media that, “Darvesh’s body has been sent for autopsy, while Manish who shot himself in head has been referred to Medanta hospital in Gurgaon.”
According to eye-witnesses, Manish Sharma, who shared office with Darvesh Yadav in Agra district court and had close ties with her for over a decade, pumped three bullets from his licensed pistol into Darevsh head, chest and stomach while standing at the entrance door of advocate Arvind Kumar Mishra’s chamber inside court premises. Later in the evening, Darvesh’s nephew Sunny Yadav lodged an FIR in which he named Manish Sharma, his wife Vandana and another advocate Vineet Gulecha. The three have been booked for murder, criminal conspiracy and criminal intimidation.
Be it noted, the FIR says that, “My aunt Dravesh Singh Yadav was sitting at advocate Arvind Kumar Mishra’s chamber when accused Manish Sharma came with his pistol and fired shot at her and another relative Manoj Kumar. While Kumar escaped the bullet, Darvesh suffered three hits. Later, Manish shot himself with the same weapon.” Meanwhile, the CM Yogi Adityananth while taking immediate cognizance of it had directed the Agra DM and SSP to investigate the reason for the incident. The investigation is still on.
It would be pertinent to mention here that advocate Abhishek Yadav whose office is opposite the chamber where the crime took place said that, “A heated argument had broken out inside Mishra’s chamber between Darvesh and Manish. Seconds later, he came out of Mishra’s chamber and took out his weapon to load bullets. He went back and stood at entrance of chamber and fired three shots at Darvesh.”
It would be worth mentioning here that the Bar Council of India has condemned the murder and demanded security for its members. It sought a minimum compensation of Rs 50 lakh to the family of the victim. Very rightly so! Former UP Bar Council Chairperson and present member – Akhilesh Awasdthi said that Darvesh Singh was elected chairperson on June 9. He said that, “She was earlier Vice President of the Bar Council. We demand compensation of Rs 50 lakh for her family. We also request the state government to provide security to all UP Bar Council member and lawyers.”
More importantly, a law should be made whereby no advocate or anyone else is allowed to carry weapons or bullets inside court premises under any circumstances. Also, even advocates must be checked to ensure that no one carries weapon with him/her inside court premises under any circumstances! Only then can security of advocates and those working in courts be ensured which is indispensable four judicial system to function normally and fearlessly under all circumstances!
It must be mentioned here that National Commission for Women Chairperson Rekha Sharma who visited the court premises expressed her strong displeasure over the armed weapon been brought inside the court premises. She rightly said that, “Why should lawyers or anyone be allowed to bring weapon inside court premises. We will write to Bar Council of India and UP Bar Council to ensure that no weapon is allowed in court premises. It’s extremely disappointing that an advocate was shot inside court by her own colleagues. I’ll submit my finding report to Union Home Minister.”
Taking a stern view of the Uttar Pradesh Bar Council Chairperson Darvesh Yadav’s murder in Agra court premises, the Allahabad High Court directed the state government to ensure foolproof security in all court premises in the state. The Registrar General of the Allahabad High Court, through a press note has informed that as the Chief Justice has taken serious view of the matter, has directed the state government to take appropriate steps immediately regarding ‘zero error security’ in the High Court, Allahabad and Lucknow and district courts of the state. The press note of the Registrar General mentions that, “I am directed to assure all the advocate fraternity that the court is taking all necessary steps to beef up the security of the court’s campus and the persons related to dispensation of justice on the subordinate courts.”
It is welcome to note that following this dastardly incident of murder of UP Bar Council Chairperson, the lawyers of District Court of Allahabad held a condolence meeting and thereafter observed a day’s strike condemning the incident. Manoj Kumar Singh alias Lokesh who is Secretary of District Bar Association of Allahabad has minced no words in saying unequivocally that, “We have demanded that all the necessary steps should be taken to revamp the security of all the courts of the state and no one, be it lawyers and common public, should not be allowed with arms including those possessing licensed weapon.” Absolutely right!
Ban advocates and also all others absolutely from carrying any kind of weapons or bullets inside the court premises under any circumstances! Only then can it be ensured that in future no young and promising advocate like Darvesh Singh Yadav’s life is cut short so abruptly and suddenly for no fault of hers! There can be no denying or disputing it!
Sanjeev Sirohi, Advocate,
s/o Col BPS Sirohi,
A 82, Defence Enclave,
Sardhana Road, Kankerkhera,
Meerut – 250001, Uttar Pradesh.
Are Stock Markets Interdependent? An Empirical Study of Selected Market Indices
It has been acclaimed by various researchers that international diversification has reduced its charm as return-risk of the world markets are highly correlated due to information spillover effect and globalization. This study examines inter linkages and interactions, if any, among the selected twelve indices of developed and emerging economies. The study applies descriptive statistics, correlation coefficients and Granger Causality test to check basic characteristics of each indices and their correlation and impact on each other. Granger Causality test for some indices shows that return of one market index had causal influence on return in other market index. The finding of this paper gives good insights to the international investors who are looking to reduce risk for a given level of return.
Mobile Money – A Catalyst for Financial Inclusion in Developing Economies: A Case Study of Zimbabwe using FinScope Survey Data
Mobile money in Zimbabwe has extensively extended the frontiers of financial inclusion to reach millions who were earlier excluded within a relatively short space of time. The growing use of mobile phones in transferring money and making payments has significantly altered the countrys financial inclusion landscape as millions who had been hitherto excluded can now perform financial transactions in a relatively cheap, reliable and secure way. The FinScope results found out that 45% of the adult population use mobile money services. Of those using mobile money, 65% mentioned that is convenient, while 36% mentioned that it is cheap. Mobile money is accessible. These drivers are in the backdrop of few or no bank branches in rural communities as well as time and cost of accessing the bank branches. In Zimbabwe, mobile money is mostly used as a vehicle for remittances. While some people are enjoying mobile money services, it is important to mention that there are still people who are excluded from the formal financial system. The reasons why people do not use mobile money are mainly related to poverty issues. Mobile money remains a viable option to push the landscape of financial inclusion in Zimbabwe and other emerging markets where the formal financial system might not be strong.
Are Indian Investors Return Chasers? An Anatomy of their Trading Behavior
Momentum has remained an unanswered anomaly in finance literature. Researchers have pointed out two arguments, whether the source of prior return anomalies are rational or behavioral. In this paper, we examined return chasing tendency investors and the profitability of probable price momentum strategy in Indian equity market using the monthly return data of equities represented in BSE-500 index encompassing the time period from July 2004 to Jun 2014. Study is an attempt to analyze momentum effect before, during and after the financial crisis of 2007–2009 to check whether investors continue to follow the same strategy during crisis or their behavior undergoes any change. Also study examined the adequacy of rational CAPM models to explain momentum profits. The result evidenced a strong presence of economically and statistically significant momentum profit in Indian stock market equity returns. Therefore return chasing tendency of Indian investors is found to be persistent in the intermediate horizon in Indian context. Closer observation of the results reveals that, Indian investors are winners chasers rather than investor in past losers. Study also confirmed that investors sentiments are volatile according to general market environment and inadequacy of rationalist equilibrium model to explain momentum profits.
Multi-Index Conditional Investment Performance Measure: An Empirical Analysis
The present study seeks to examine the mutual fund performance of the open-ended selected equity schemes of UTI based on multi-index measures as well as conditional multi-index measure. It is observed from the analysis that multi-index measure is able to capture the beta and alpha effects on market adjusted basis and the estimated coefficients is a better representative as compared to the single index measure. When time lagged (lagged at 1 month, 2 months, quarterly and yearly) multi-index measures are applied then the estimated coefficients (alpha & beta) which are market adjusted and time adjusted look more representative than the multi-index measure (without lagged effect). Finally, when we extended the time lagged multi-index measure on a conditional way (conditional on public information variables) then we observe that conditional multi-index lagged measure provides much more representative results in all respects as compared to the all measures after conditioning public information effects.
CEO Compensation and Acquired and Acquiring Companies in Large Corporate Acquisitions
This paper examines the relative sensitivity of CEO compensation of both acquiring and acquired firms in the top 30 U.S. largest corporate acquisitions in each year for the period of 2003 to 2012. We find that total compensation and bonus granted to executive compensation for acquired companies, not acquiring companies, are significantly related to the amount of acquisition deal even after the size and firm performance are controlled for. Both acquiring and acquired CEOs are found to make the significantly higher compensation than the matched sample firms in the same industry and calendar year. We also find that executives with higher managerial power, as measured by a lower salary-based compensation mix, prior to a corporate acquisition are more likely to receive a higher executive pay in the year of acquisition. The association between executive compensation and managerial power seems to be stronger for acquired firms than for acquiring firms in corporate acquisition. Overall, our findings suggest that corporate acquisition has higher impacts on executive compensation for acquired firm CEOs than for acquiring firm CEOs.
Are Stock Markets Interdependent? An Empirical Study of Selected Market Indices
It has been acclaimed by various researchers that international diversification has reduced its charm as return-risk of the world markets are highly correlated due to information spillover effect and globalization. This study examines inter linkages and interactions, if any, among the selected twelve indices of developed and emerging economies. The study applies descriptive statistics, correlation coefficients and Granger Causality test to check basic characteristics of each indices and their correlation and impact on each other. Granger Causality test for some indices shows that return of one market index had causal influence on return in other market index. The finding of this paper gives good insights to the international investors who are looking to reduce risk for a given level of return.
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